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Nov 27, 2018 · 24m · top-founders

1221 JaneApp Raises $0 Dollars, Passes $4.7m in ARR Helping Patients Schedule Sessions

Allison Taylor · 11m spoken Nathan Latka · 9m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top Entrepreneurs Podcast, Nathan Latka interviews Jane App co-founder Allison Taylor, who details how her allied health practice management platform bootstrapped to $4.7 million in ARR with industry-leading unit economics and zero venture capital funding.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 43.3% of the talking time here. How this is scored →

Nathan as informed peer 5.6 Guest teaching 3.6 Guest disagreement 2.0 Nathan pushing back 3.2
05100:0010:0020:003:44–5:55 · Nathan as informed peer 4/10 Origin Story: Developing Jane App in 2011 Nathan inquires about the founding story of JaneApp and the original multidisciplinary practice. Taylor explains paying her developer $30,000 upfront specifically so she had the leverage to be an exacting, demanding client.5:55–10:16 · Nathan as informed peer 6/10 Scaling Customer Base and Market Tailwinds Nathan breaks down JaneApp's 18,000 user count into $4.7M ARR and calculates their historic run rate. Taylor corrects him on customer acquisition trends and shares market tailwinds from competitors shutting down.10:20–14:49 · Nathan as informed peer 7/10 Sponsor Message: Gusto Payroll and HR Solutions Following the Gusto ad read, Nathan presses on headcount scaling and challenges whether an unspent $1M is cash in hand or projected budget. He calculates their unit economics, proving a rapid two-month CAC payback period.14:51–19:24 · Nathan as informed peer 6/10 Resisting Venture Capital and the Zero Cash Date Taylor marvels at the bizarre VC concept of a zero-cash date and explains the Canadian 'narwhal' terminology. Nathan breaks down VC fund mechanics, arguing that outside funding merely accelerates the timeline to either massive scale or fast failure.19:24–23:27 · Nathan as informed peer 5/10 The Bootstrap Narrative and Critique of VC Metrics Taylor critiques tech lists that measure success strictly by funding velocity rather than revenue or profitability, and corrects Nathan's assumption that she was a clinician. Nathan closes out the interview with the Famous Five.3:44–5:55 · Guest teaching 3/10 Origin Story: Developing Jane App in 2011 Nathan inquires about the founding story of JaneApp and the original multidisciplinary practice. Taylor explains paying her developer $30,000 upfront specifically so she had the leverage to be an exacting, demanding client.5:55–10:16 · Guest teaching 3/10 Scaling Customer Base and Market Tailwinds Nathan breaks down JaneApp's 18,000 user count into $4.7M ARR and calculates their historic run rate. Taylor corrects him on customer acquisition trends and shares market tailwinds from competitors shutting down.10:20–14:49 · Guest teaching 3/10 Sponsor Message: Gusto Payroll and HR Solutions Following the Gusto ad read, Nathan presses on headcount scaling and challenges whether an unspent $1M is cash in hand or projected budget. He calculates their unit economics, proving a rapid two-month CAC payback period.14:51–19:24 · Guest teaching 5/10 Resisting Venture Capital and the Zero Cash Date Taylor marvels at the bizarre VC concept of a zero-cash date and explains the Canadian 'narwhal' terminology. Nathan breaks down VC fund mechanics, arguing that outside funding merely accelerates the timeline to either massive scale or fast failure.19:24–23:27 · Guest teaching 4/10 The Bootstrap Narrative and Critique of VC Metrics Taylor critiques tech lists that measure success strictly by funding velocity rather than revenue or profitability, and corrects Nathan's assumption that she was a clinician. Nathan closes out the interview with the Famous Five.3:44–5:55 · Guest disagreement 1/10 Origin Story: Developing Jane App in 2011 Nathan inquires about the founding story of JaneApp and the original multidisciplinary practice. Taylor explains paying her developer $30,000 upfront specifically so she had the leverage to be an exacting, demanding client.5:55–10:16 · Guest disagreement 2/10 Scaling Customer Base and Market Tailwinds Nathan breaks down JaneApp's 18,000 user count into $4.7M ARR and calculates their historic run rate. Taylor corrects him on customer acquisition trends and shares market tailwinds from competitors shutting down.10:20–14:49 · Guest disagreement 2/10 Sponsor Message: Gusto Payroll and HR Solutions Following the Gusto ad read, Nathan presses on headcount scaling and challenges whether an unspent $1M is cash in hand or projected budget. He calculates their unit economics, proving a rapid two-month CAC payback period.14:51–19:24 · Guest disagreement 3/10 Resisting Venture Capital and the Zero Cash Date Taylor marvels at the bizarre VC concept of a zero-cash date and explains the Canadian 'narwhal' terminology. Nathan breaks down VC fund mechanics, arguing that outside funding merely accelerates the timeline to either massive scale or fast failure.19:24–23:27 · Guest disagreement 2/10 The Bootstrap Narrative and Critique of VC Metrics Taylor critiques tech lists that measure success strictly by funding velocity rather than revenue or profitability, and corrects Nathan's assumption that she was a clinician. Nathan closes out the interview with the Famous Five.3:44–5:55 · Nathan pushing back 2/10 Origin Story: Developing Jane App in 2011 Nathan inquires about the founding story of JaneApp and the original multidisciplinary practice. Taylor explains paying her developer $30,000 upfront specifically so she had the leverage to be an exacting, demanding client.5:55–10:16 · Nathan pushing back 3/10 Scaling Customer Base and Market Tailwinds Nathan breaks down JaneApp's 18,000 user count into $4.7M ARR and calculates their historic run rate. Taylor corrects him on customer acquisition trends and shares market tailwinds from competitors shutting down.10:20–14:49 · Nathan pushing back 4/10 Sponsor Message: Gusto Payroll and HR Solutions Following the Gusto ad read, Nathan presses on headcount scaling and challenges whether an unspent $1M is cash in hand or projected budget. He calculates their unit economics, proving a rapid two-month CAC payback period.14:51–19:24 · Nathan pushing back 4/10 Resisting Venture Capital and the Zero Cash Date Taylor marvels at the bizarre VC concept of a zero-cash date and explains the Canadian 'narwhal' terminology. Nathan breaks down VC fund mechanics, arguing that outside funding merely accelerates the timeline to either massive scale or fast failure.19:24–23:27 · Nathan pushing back 3/10 The Bootstrap Narrative and Critique of VC Metrics Taylor critiques tech lists that measure success strictly by funding velocity rather than revenue or profitability, and corrects Nathan's assumption that she was a clinician. Nathan closes out the interview with the Famous Five.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 68.3% · guest 31.7%0:00 · Nathan 68.3% · guest 31.7%3:00 · Nathan 25.5% · guest 74.5%3:00 · Nathan 25.5% · guest 74.5%6:00 · Nathan 28.7% · guest 71.3%6:00 · Nathan 28.7% · guest 71.3%9:00 · Nathan 61.8% · guest 38.2%9:00 · Nathan 61.8% · guest 38.2%12:00 · Nathan 34.4% · guest 65.6%12:00 · Nathan 34.4% · guest 65.6%15:00 · Nathan 25.4% · guest 74.6%15:00 · Nathan 25.4% · guest 74.6%18:00 · Nathan 43.3% · guest 56.7%18:00 · Nathan 43.3% · guest 56.7%21:00 · Nathan 55.6% · guest 44.4%21:00 · Nathan 55.6% · guest 44.4%24:00 · Nathan 92.7% · guest 7.3%24:00 · Nathan 92.7% · guest 7.3%
Sharpest disagreement ▶ 20:14 Critique of vanity venture capital metrics

Taylor forcefully mocks VC-centric rankings that rank companies solely on capital raised divided by years in business while ignoring actual revenue and profitability.

 Hardest push from Nathan ▶ 12:41 Challenging unspent budget vs cash

Nathan refuses to let Taylor conflate projected budget with collected cash, directly pushing to clarify if the $1M is sitting in the bank or merely projected revenue.

 Biggest teaching moment ▶ 15:39 Explaining the absurdity of runway

Taylor breaks down her realization at SaaStr that venture-backed companies normalize operating with an inevitable zero-cash date, reframing conventional startup runway as bizarre to a profitable bootstrapper.

 Nathan holds their own ▶ 14:26 Deriving unit payback economics

Nathan demonstrates sharp SaaS financial acumen by instantly calculating Taylor's ARPU across 18,000 practitioners and deducing a two-month payback on her $40 acquisition cost.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Origin Story: Developing Jane App in 2011 4312 Nathan inquires about the founding story of JaneApp and the original multidisciplinary practice. Taylor explains paying her developer $30,000 upfront specifically so she had the leverage to be an exacting, demanding client.
Scaling Customer Base and Market Tailwinds 6323 Nathan breaks down JaneApp's 18,000 user count into $4.7M ARR and calculates their historic run rate. Taylor corrects him on customer acquisition trends and shares market tailwinds from competitors shutting down.
Sponsor Message: Gusto Payroll and HR Solutions 7324 Following the Gusto ad read, Nathan presses on headcount scaling and challenges whether an unspent $1M is cash in hand or projected budget. He calculates their unit economics, proving a rapid two-month CAC payback period.
Resisting Venture Capital and the Zero Cash Date 6534 Taylor marvels at the bizarre VC concept of a zero-cash date and explains the Canadian 'narwhal' terminology. Nathan breaks down VC fund mechanics, arguing that outside funding merely accelerates the timeline to either massive scale or fast failure.
The Bootstrap Narrative and Critique of VC Metrics 5423 Taylor critiques tech lists that measure success strictly by funding velocity rather than revenue or profitability, and corrects Nathan's assumption that she was a clinician. Nathan closes out the interview with the Famous Five.

Statements from this episode (16)

Assertion Not checkable as stated
Taylor: Jane App Base Price Is $74 and Average Customer Pays $95
“So our base price is 74, but our average customer right now is about 95.”
Allison Taylor Nov 27, 2018 ▶ 2:42
Assertion Not checkable as stated
Taylor: Jane App's Gross Revenue Churn Is Under 5% Annually
“It's under five percent year over year.”
Allison Taylor Nov 27, 2018 ▶ 3:05
Assertion Not checkable as stated
Taylor: Jane App Operates With No Sales Staff
“So we've had perfect market fit and really amazing customer service, and we don't have any sales staff.”
Allison Taylor Nov 27, 2018 ▶ 3:10
Assertion Not checkable as stated
Taylor: Jane App's First Version Ran On A Clinic's Mac Mini
“And so he built me the original version in about six weeks. We went live. I ran it for a year on a Mac mini in my clinic.”
Allison Taylor Nov 27, 2018 ▶ 5:11
Assertion Not checkable as stated
Taylor: Co-Founder Was Paid $30,000 To Build Initial Jane App Version
“It was like 30,000 dollars.”
Allison Taylor Nov 27, 2018 ▶ 5:39
Disclosure
Taylor: Jane App Offers No Free Trial To Its 18,000 Practitioners
“All paying and we don't have a free trial.”
Allison Taylor Nov 27, 2018 ▶ 6:05
Assertion Not checkable as stated
Allison Taylor: Jane App has reached $4.7M in ARR
“So, we're at 4.7 million is our ARR.”
Allison Taylor Nov 27, 2018 ▶ 8:03
Assertion Not checkable as stated
Taylor: Jane App Revenue Grew 105% Two Years In A Row
“So a hundred and five percent, I think was our revenue increase last year and same with the year before.”
Allison Taylor Nov 27, 2018 ▶ 8:25
Assertion Not checkable as stated
Allison Taylor: Jane App has over 550 clinics in the US
“We have over 550 clinics in the U.S. Very suddenly that just picked us up before we're actually really ready.”
Allison Taylor Nov 27, 2018 ▶ 9:23
Assertion Not checkable as stated
Taylor: Bootstrapped Jane App operates profitably
“Oh, we're profitable.”
Allison Taylor Nov 27, 2018 ▶ 12:31
Assertion Not checkable as stated
Taylor: Jane App Has Never Missed An Internal Financial Target
“We've never not hit our targets. We have a spreadsheet that we created like five years ago when we've hit our targets every time.”
Allison Taylor Nov 27, 2018 ▶ 12:53
Assertion Not checkable as stated
Taylor: Jane App's customer acquisition cost is $40
“Our acquisition cost is 40 bucks.”
Allison Taylor Nov 27, 2018 ▶ 13:28
Opinion
Latka: VCs Must Sell Ego Stories Because Their Economics Rarely Make Sense
“VCs have to sell the story, like the ego story associated with raising capital. Otherwise, no one would raise capital because the economics rarely make sense.”
Nathan Latka Nov 27, 2018 ▶ 17:00
Disclosure
Taylor: Took A Call With Bessemer Without Knowing Who They Were
“And we do get like six emails a day from You know, different. I don't know how you're supposed to choose. You know, we got an email. We had a call with Bessemer and I had no idea who they were. And I'm on the call just, and people offer like Bessemer. Yo…”
Allison Taylor Nov 27, 2018 ▶ 17:55
Opinion
Latka: Founders Brag About Bootstrapping Only When Other Stories Fail
“The people that like bootstrap and want to brag about the bootstrap story do it because none of their other stories are working, right? So that's what they lean on.”
Nathan Latka Nov 27, 2018 ▶ 19:38
Disclosure
Taylor: Jane App Does Not Have A Marketing Team
“I don't have a marketing team.”
Allison Taylor Nov 27, 2018 ▶ 19:57
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